Swedish infrastructure services provider Terranor AB reported a 23% year-over-year organic revenue increase to SEK 1.005 billion for the second quarter of 2026, exceeding analyst expectations of SEK 904 million. The company’s shares fell 6.7% to SEK 36.40 following the results, down from SEK 39.00 at the prior close.
Terranor’s adjusted EBITDA surged 61% sequentially to SEK 27 million, lifting the adjusted EBITDA margin to 2.6% from 2.0% in the first quarter. The company maintained its long-term EBITDA margin target of 5% by 2028, though it remains below that level. Gross profit margin stood at 11.8% over the last twelve months. Adjusted operating cash flow totaled SEK 20 million, while operating cash flow was negative SEK 24 million.
Net debt increased to SEK 1.97 billion from SEK 1.5 billion in the first quarter, leaving the leverage ratio at 1.97x, still below the 2.5x covenant ceiling. Terranor’s order backlog reached a record SEK 7.3 billion. The company paid a SEK 1.5 per share dividend during the quarter and recorded a SEK 17 million property sale with no P&L impact.
Revenue growth was led by Sweden, which generated SEK 669 million, accounting for 32% of total growth. The segment’s adjusted EBITDA margin rose to 3.2% from 2.2% a year earlier. Finland’s revenue remained stable at SEK 160 million, with adjusted EBITDA near break-even due to price pressure in state tenders, while Denmark reported SEK 160 million in revenue, up 13%, with an adjusted EBITDA margin of 2.9%.
Terranor’s management emphasized disciplined growth, with CEO Michael Berglin stating the company prioritizes profitability over aggressive expansion. Analysts at DNB Carnegie estimate full-year earnings at SEK 0.52 per share. The company has set medium-term organic growth targets of 8%, though it achieved 23% in the latest quarter. Long-term revenue guidance includes SEK 4 billion for 2026, SEK 4.5 billion for 2027, and SEK 5 billion for 2028.
